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06/10/2010 09:50 AM

Confused about paying LTD Insurance Company back

gouchie77
gouchie77  
Posts: 57
Member

Hi All,

I recently joined this group and am in need of some direction.

I was just notified today (via phone) that my SSD claim for Systemic Lupus (SLE) was approved, and they are retroacting my claim back to Nov 2008. Great, right? That's what I thought initially...

However, I had paid in to a Short-Term Disability policy, and my previous employer paid into a Long-Term Disability policy through the same company...and this Insurance company has been paying me benfits since Nov. 2008.

The attorneys I worked with told me today that this insurance company has a "dollar for dollar" reimbursement clause in the contract, and I must give the insurance company back every penny of what will be sent to me by SSD, and that I will have to make "payment arrangements" for the other "monies owed them" (insurance company) as my SSD amount is about $800.00 LESS monthly than what the private LTD company paid me per month, and they want fully reimbursed.

Has anyone been through this? I don't know what to do. The attorneys I used can take care of handling this (at no extra charge than what they've already been paid), but I don't know if I should use them. I should receive the "back-payment" soon through SSD, and will not be paid again through SSD until the end of July...so if all the money SSD is sending me has to co to the Insurance Company, then how do I live or feed my kids?!

Also, my appt to get benefits for my kids isn't for a few weeks...and the attorney's office told me the Insurance Company will seek monies from that as well, until everything has been paid off?!?!?!

Is this normal? Is there anything I can do? How can I survive, as it is I will be bringing in so much more less (and could barely make it with that) let alone to be repaying an Insurance Company?

Advice please?

Thanks,

Gouchie

Reply
 

06/10/2010 11:43 AM
shaz66
shaz66  
Posts: 802
Member

I think the fact that there is a clause in the contract means your screwed. Makes you wonder if it was worth having in the first place.

It was probably in the fine print. Read the document yourself, and see exactly what it says. I agree it doesn't seem right though. But nowadays you really can't trust anyone.

The way it sounds to me is they were loaning you money until you got ssd. Thats not what I call insurance.

You may want to check with your Human resources department if you got the insurance through work. I am sorry this happened to you. I hope you can find a way out of it.


06/10/2010 06:38 PM
poorjane
poorjane  
Posts: 230
Member

I knew someone in same situation. had long term disability and then had to return monies received when retro social security was approved..you cant have both current insurance payments and also a retro payment.

which the insurance company considers as double dipping.

At least you received some income while waiting for social security. I went out on disability 3 weeks prior to Long term benefits were active...so for past three years had to move in with family, and borrow money to survive. and go on general assistance and medicaid.

You may have a short rough patch, but in time everything will work out.


06/10/2010 06:57 PM
gouchie77
gouchie77  
Posts: 57
Member

poorjane,

Thanks for your response. I have no intention nor feel entitled to "double dip". Actually, I think the insurance company is more the culprit in this situation. They have received monthly premiums from my previous employer. I don't even have an issue with paying back some of the money. However, my SSD is several hundred dollars "short" a month of what I was receiving through LTD, and the insurance company not only wants the entire retro payment, but may want me to set up a payment plan to also pay the difference...meaning they want me to pay back everything they paid out (of course, not minus their premiums) even though SSD is not giving me as much as I was paid through LTD...which I think is highway robbery.

Even though I received short term disability and then LTD (I privately paid into my STD policy), I was still living on a significant lower amount each month. My husband has lost his job due to lack of work, and we have 4 dependent children. We stand to lose our home soon, and our vehicle...even with LTD, so I understand how you feel.

Also to Shaz66, thank you for your response! I'll let you know what happens, and will go through my info with a "fine-toothed comb"!


06/10/2010 07:07 PM
jmick
jmickPosts: 13899
VIP Member

Something definitely sounds shady about what they're asking for. In every situation I have heard of, the LTD company has only asked for what SSDI has paid out. It seems outrageous that they would ask you to pay more than that. Those payments are what you paid into the policy for, and they are responsible for paying anything above your SSD payments to reach the monthly income described in your plan. I would definitely look into further, it just doesn't sound right.

06/11/2010 11:34 AM
fibroforever
fibroforever  
Posts: 4152
VIP Member

Your mess with the LTD Company sounds horrible. I hope you get it all worked out. Please keep us informed.

06/17/2010 09:17 AM
shaz66
shaz66  
Posts: 802
Member

Well this makes me wonder what would happen if ssd was denied? would you still owe them money?

This is insurance you paid into, It really sounds like a loan. I hope it was cheap for what you are getting out of it;


06/18/2010 09:30 AM
NonaLinda
NonaLinda  
Posts: 18
Member

I agree, you really need to look into this. It doesn't sound right to me. Good Luck.
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